Rick's Cabaret Expects New York City Club Will Add Significantly To The Company's Revenue And Income
NEW YORK CITY--(October 7, 2005)-- Rick's
Cabaret International, Inc. [NASDAQ:RICK]
said last night the launch of its upscale adult gentlemen’s
club in New York City has been successful and the new location could
increase the company’s revenue by 50% in fiscal 2006.
a meeting of the Financial Analysts and Money Managers,
in New York City on Thursday evening (Oct. 6), Eric Langan, President
and CEO of Rick’s Cabaret, said the new club in midtown Manhattan
should generate about $8 million in revenue in fiscal 2006, which
began Oct. 1, 2005. The company’s revenue in fiscal 2004 was
$16 million; the 2005 fiscal year closed on September 30th and results
are not yet available.
Mr. Langan said the New York City club should be immediately accretive
to profit and could bring total net income for the company to $2
million in fiscal 2006. Rick’s Cabaret reported net income
of $ .8 million in 2004; the 2005 figures are not yet available.
While Mr. Langan did not discuss results for the company’s
2005 fiscal year he did reiterate an earlier statement that fourth
quarter fiscal 2005 earnings would be negatively impacted by the
costs associated with the launch of the New York City club.
He said revenue projections are being met in the first weeks following
the launch of the luxurious new three-story Rick’s Cabaret-NYC,
located at 50 West 33rd Street between Madison Square Garden and
the Empire State Building. More than 500 patrons visited the club
on the first night of a four-day grand opening celebration September
21st. Reviews in the media and from patrons have been positive.
Mr. Langan also told the FAMMS group that Rick’s Cabaret intends
to participate in what he predicted will be the rapid consolidation
of the adult nightclub industry over the next few years. He noted
that so far in 2005 the company has acquired clubs in New York City
and Charlotte, NC.
He said there are about 3,000 upscale gentlemen’s clubs in
the U.S., many of them owned by individual “baby boomers”
who he believes are entering a time in their lives when they want
to monetize their assets. Rick’s Cabaret hopes to acquire
additional clubs through a combination of cash and issuance of its
common stock in a model similar to that of the casino industry during
the past decade.
Rick’s Cabaret International, Inc. (NASDAQ: RICK, www.ricks.com)
operates upscale adult nightclubs serving primarily businessmen
and professionals that offer live adult entertainment, restaurant
and bar operations. The company owns, operates or licenses adult
nightclubs in New York City, New Orleans, Houston, Minneapolis and
other cities under the names "Rick's Cabaret," "XTC,"
“Club Onyx” and “Hummers.” No sexual contact
is permitted at any of these locations. Rick’s Cabaret also
owns the adult Internet membership Web site, www.couplestouch.com,
and a network of nine online auction sites for adult products under
the flagship URL www.naughtybids.com.
Rick’s Cabaret common stock is traded on the NASDAQ SmallCap
market under the symbol RICK. For further information contact [email protected].
This press release may contain forward-looking information within
the meaning of Section 21E of the Securities Exchange Act of 1934
that involves significant risks and uncertainties, and is subject
to the safe harbors created by this section. Important factors that
could cause actual results for Rick's Cabaret to differ materially
from those indicated in this press release include the risks and
uncertainties as to the future operational and financial results
of our Web sites, conditions relevant to real estate transactions,
the future operational performance of our partners, the laws governing
the operation of adult entertainment businesses, competitive and
economic factors, dependence on key personnel and the ability to
manage operations. Rick's Cabaret has no obligation to update or
revise the forward-looking statements to reflect the occurrence
of future events or circumstances. Please refer to the documents
Rick’s Cabaret files from time to time with the Securities
and Exchange Commission, in particular the most recent quarterly
reports on Form 10-QSB and annual report on Form 10-KSB, which are
available at the Company’s website, www.ricks.com.
Contact for further information: Allan Priaulx, 212-338-0050,